On July 7, President Trump announced revised tariffs rates for certain trading partners that will take effect on August 1 and extended the postponement of his “Liberation Day” tariffs. The revised tariffs were announced via letters to 14 countries and range from 25% to 40%. These actions come mere days before President Trump’s reciprocal tariffs, which were paused to allow for the negotiation of bilateral trade agreements, were due to resume on July 9 for the vast majority of countries.
Background
On April 2, President Trump signed Executive Order 14257 imposing reciprocal tariffs on imports from nearly all counties. These tariffs, which the President dubbed the “Liberation Day” tariffs, ranged from a 10% baseline duty upwards to 50%. The Executive Order invoked the International Emergency Economic Powers Act (IEEPA) as the legal basis for the new tariffs and pointed to the national emergency posed by “large and persistent annual U.S. goods trade deficits, [that] constitute an unusual and extraordinary threat to the national security and economy of the United States.”
Within a week of the Executive Order, President Trump announced a 90-day postponement of the new duties, though a 10% baseline rate remained in effect. This postponement was intended to allow the United States time to negotiate bilateral trade deals with the countries affected by the reciprocal tariffs. Although, a couple framework deals have been announced—including with the United Kingdom and with Vietnam— agreements with other countries have not been announced, in advance of when the original, higher reciprocal tariffs were set to commence (on July 9).
In the months since the Executive Order, several businesses and U.S. state attorneys general have challenged the authority of the President to impose tariffs under IEEPA. Two courts have already invalidated tariffs initiated under IEEPA and have issued injunctions preventing their implementation; however, because the injunctions have been stayed pending appeals of the decision, the tariffs remain in effect.
The Revised Tariffs
The revised tariffs, announced via a series of letters posted on President Trump’s social media account, target a variety of trading partners: Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Japan, Kazakhstan, Korea, Laos, Malaysia, Myanmar, Serbia, South Africa, Thailand, and Tunisia. The letters indicate the tariffs will commence on August 1 and will be “separate from all Sectoral Tariffs”—meaning these tariffs are likely to be stacked with other applicable tariffs (e.g., Section 232 tariffs on steel, aluminum, autos, auto parts, etc.) .
The rates assessed under the new tariffs track closely with those introduced by the Liberation Day tariffs.
| Country | Liberation Day tariff (%) | New tariff (%) | Change (%) |
| Japan | 24 | 25 | + 1 |
| Korea | 25 | 25 | No change |
| Malaysia | 24 | 25 | + 1 |
| Kazakhstan | 27 | 25 | – 2 |
| South Africa | 30 | 30 | No change |
| Laos | 48 | 40 | – 8 |
| Myanmar | 44 | 40 | – 4 |
| Thailand | 36 | 36 | No change |
| Cambodia | 49 | 36 | – 13 |
| Serbia | 37 | 35 | – 2 |
| Bangladesh | 37 | 35 | – 2 |
| Indonesia | 32 | 32 | No change |
| Bosnia and Herzegovina | 35 | 30 | – 5 |
| Tunisia | 28 | 25 | – 3 |
The letters invite the subject countries to “eliminate [their] Tariff, and Non Tariff, Policies and Trade Barriers” in which case “[the U.S.] will, perhaps, consider an adjustment to this letter.” On the other hand, the letters threaten that if the subject country raises its existing tariff rates, the United States will make corresponding adjustments to its rates.
Further Pause
Concurrently with the new tariff announcements, President Trump signed an Executive Order extending the postponement of all country-specific reciprocal tariffs, until 12:01 AM on August 1, except China (which will remain postponed until August 12). During this period, the 10% universal rate will remain in effect. The Executive Order states that the additional postponement is “in light of the ‘sincere intentions’ and willingness of these trading partners to address the national and economic security concerns of the United States.”
| Country | Status | Date |
| China | Postponed | August 12 |
| Other country-specific reciprocal tariffs | Postponed | August 1 |
Takeaways
The letters remain silent on several significant matters. For one, the letters do not address why these fourteen countries were singled out—though White House Press Secretary Karoline Leavitt hinted at more letters to come—or why the earlier tariffs were reduced for some but raised for others. Additionally, while the letters do not explicitly state the authority for the tariffs, they suggest that the President will again rely on IEEPA, despite the ongoing legal challenges to that mechanism, stating that the “Deficit is a major threat to our Economy and, indeed, our National Security!”
FURTHER READING – For additional analysis on the South African response to the tariff announcement: South Africa: Responding to Trump’s “Letter” Tariffs with Diplomacy, Deal-Making and Diversification – Import and Trade Remedies Blog
UPDATE – On July 9, President Trump announced revised tariffs against eight additional countries: US Updates Tariff Rates for Eight Countries in Latest Round of Tariff Letters – Import and Trade Remedies Blog
